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Business Ethics & Philanthropy Why are Ethics Important During a Downfall in Business
Why are Ethics Important During a Downfall in Business
It is not so difficult to install business ethics when the business is flourishing. It gets difficult to hold on to ethics when the business is facing a downfall. It is during times like these when companies take reckless decisions. The hard time in business causes executives to become insecure making them hold off information in the fear of offending any stakeholders of the business. These fears distort thinking, damage relationships, and lead some managers down the slippery slope of white lies and deception.
In a bad economy or a business failure, taking ethical measures can turn out to be the best strategy. This is because,
- Makes it a team effort.
Keeping transparency intact can improve the relationships between the employees, making the business a team effort. When there are many hands and heads working towards solving a problem, they have a better chance at succeeding.
- Improves the morale of employees.
Being ethical improves the morale of all the stakeholders of the business. The stakeholders feel more invested in the company this way and make honest efforts to stand by it during its bad time. It also builds trust among each other which builds long-lasting relationships.
- Appealing to customers.
Ethical businesses appeal more to customers. Studies have proven that consumers today are willing to pay a higher price to use products and services by businesses that are ethical and socially responsible. Holding onto ethics during difficult times shows the commitment of a business towards its integrity which helps in retaining more customers and converting many of them to loyal customers.
- Goodwill
Goodwill is viewed as an asset in every business. In fact, several businesses are valued in billions on the basis of their goodwill. Corporate ethics play a huge role in making positive goodwill of the company.
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Regards,
The CSR Journal Team
